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tv   The Willis Report  FOX Business  January 15, 2013 9:00pm-10:00pm EST

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this includes secret service protection. now provided all former presidents for life thanks to legislation president obama's signed last week, and that is into the 10's. as to say it is a sweet deal on our dime for guys are all multimillionaire's and have lots and lots and lots of times. that does not mean average giving our former leader to respect any holder of that office deserves to the max. i just draw the line and cinemax. i don't know. i'm thinking about picking up the bill for bill to see busty coeds verses busty cheerleaders, and actual movie on cinemax. it bugs me. that is where i draw the line. and now you're asking, how would you know that was on cinemax? it was in my guide, and i was just poking around. honey, i don't know how this got here. all right. it is a good thing. skillet over my head.
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inauguration coverage monday 1130 and this fine channel, 4:00 p.m. and your world. back to two 1/8 p.m. coverage here on this quadrennial event, all about us in our history, and we are all over it.i willis nex see you tomorrow. giant, sugary soda. watch. ♪ gerri: hello. i'm gerry willis. in less than a week president obama will be sworn in for his second term, butit is the last days of is first stern that are raising alarms from demanding republicans immediately raise the debt ceiling and lori about that pesky out of cotrol spending later to considering as many 19 different gun-control measures that he could in force as he gears up for his comprehensive plan tomorrow. our president seems to think of
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himself like a king and said that our elected officials. joining me now, former adviser to president george w. bush. senior fellow at the cato institute. i will start with you. here is the president back in 2006 on the idea of raising the debt limit. he said, the fact that we are here today to debate raising america's debt limit is a sign of our leaders failing in the u.s.overnment cannot pay its own bills and i intend to oppose the effort to increase the debt limit to and here he is begging for the debt limit to be raised now hat he is president. >> i think that he was right several years ago when he talked about the size of fiscal irresponsibility, but all of a sudden he seems to think it is just a wonderful, peachy keen idea. gerri: irresponsible thing to do . brad, to you. i am -- i went back and looked at the last time the government was not paying its bills.
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twenty-six days back in fiscal year 1996. clinton was president, and the only really bad thing that happened is that we furloughed a lot of what is called nonessential workers from washington. what is the ultimate impact if republicans don't agree to go along with the president and raise the debt ceiling? >> the ultimate impact is the president will have to make some tough choices, but this is a guy who says, do as i say, not as i have done and you correctly point out he voted against raising the debt ceiling. suddenly the table has turned. if he was smart he would be more conciliatory to republicans instead of on-duty challenging them. gerri: far from it. the president says the responsible thing to do. making a like the republicans still want to do anything responsible for are not concerned about the nation's debt. what would be the consequences of letting the debt ceiling just
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-- not paying any attention to it? would it be hazardous? is this going to be something bad for the country? >> not necessarily. gerri: let's let brad answered. >> what happens is overnight the government has to go to a balanced budget. consider we have deficits of a trillion dollars plus. that is not an easy task even for those of us at the cato institute you want a dramatically smaller federal government. it does not mean default. the federal government is collecting ten times as much revenue as needed to pay interest on the debt. gerri: to that point, legislation that would force the treasury to prioritize spending in deciding what bills to pay. the treasury is getting money in every single day. tax dollars don't just come in on april 15th. they come in all the time. >> and the president will be forced to do what you and i and every other american have to do and that is prioritize expenses.
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if we would not default, prioritize that which must be paid first and then make tough oices as to what is necessary and proper for our government to be spending. that is what we should be doing every day and is, quite frankly, why this president has failed to lead because he just does not believe it. he believes there is no end, and at the end of his term will be somebody else's problem. gerri: it will. >> but here is one piece of advice. there are two big fights coming up, the continuing resolution, the rest of the fiscal year 2013 spending, and there is the debt limit. we have already seen, obama will demagogue. he will send bernanke out to rattle financial markets, bully republicans, and i will be a tough fight to win. on the other hand, if they pick a fight on spending on the continuing resolution, that is where, as we saw in '95-'96 to republicans achieved a huge victory by fighting on that
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annual spending bill. at the debt is probably the better, stronger ground for fiscal conservatives the people who want smaller government and is where they should take up the five. gerri: i have to move on to the tone of yesterday's press conference with the president. what you to listen to what he had to say at the tail end of that conference. i want to know what you think. >> truism about me not sociizing enough and putting folks on te back and all that stuff. most people who know me know i am a pretty friendly guy. and i like a good party. gerri: pretty friendly, maybe with friends, but i tell you, that whole press conference, that did not seem very warm and friendly to me. what did you think? >> aloof, condescending, and lecturing, which she loves to do . heavily on the eve of his inauguration he should not have a press conference. he should have let his inaugural
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address the lofty and high spirited and guide his rhetoric for the next two weeks. and, of course, we have the state of the union. but to bentagonistic on the eve of his inaugural makes no sense. gerri: especially when you're asking for approval to compromise, work with you, complice something. i was shocked. to you. changing of topics a little bit. we are going to get some measures innroduced tomorrow on gun-control. apparently the vice-president is putting forward as many as 19 executive orders. is he overstepping his bounds? >> what is the difference between america and some country that is in deep trouble like argentina and? we are supposed to have the rule of law. we have a system set up by our founding fathers, a democratic system with the congress and the white house. for the present to unilaterally say that he can change government policy, that is very reminiscent of one of these banana republics. it is that just a question of bad policy.
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what it isdoing to our very system of government. gerri: i could not agree with you more. to you, just quickly, we don't have a lot of time. the president said he will surround himself with children at this news conference. >> i think using children as shills to do something that other steps are power is reminiscent of what he has done on health care, the epa, and his strategy is if you don't like it, soon lead. and we have. healthcare, emigration, epa. this is just another strategy to use his power in no way he knows that he should not be. gerri: that is a great photo op, and i think that is what they're looking at. thank you for coming on. great having you here. appreciate your help. a change of pace. to make up next, president obama raising eyebrows say we are not a deadbeat nation, but is he right? and as the debt ceiling comes closer, will the white house use the nuclear option?
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does he have the legal authority to do so? that's next. this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.
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♪ gerri: is another credit downgrade coming? fitch warning today they will downgrade the u.s. triple-a-rated give the debt ceiling is not raised. with more of possible economic fallout, moody's chief economist. all right. if they do this, what happens to the economy, the stock market? >> well, i would think that financial markets have had enough warning of a possible downgrade of the u.s. aaa credit rating by an agency other than s&p, and thus perhaps it would not have that damaging impact. the downgrade was not especially g. that being said there will be a
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negative psychological shock that will temporarily send share prices sharply lower, but provided that policymakers in washington could reassure markets that washington is going to do more to stabilize the budget. maybe that -- gerri: it makes into the pipe. they did it -- did not to say there are going to downgraded if we did not like the debt ceiling prices go away. they also said the current outlook is likely to be resolved even if another debt ceiling crisis is averted. they want to see spending cut. now, do you think that the markets would go to town if there was some big deal on spending? >> i think if substantial progress was made at kirby expenditures over time so that
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this threat of a data rate could be taken away so that the u.s. aaa credit rating could be reaffirmed, markets would respond positively, and that thing that businesses would like this type of development. gerri: absolutely. ben bernanke out this week saying that republicans have to go along with the president on this. did you agree, if a debt ceiling crisis, if we just don't pay attention to what the president is saying, are there big consequences? >> well, there would be if the debt ceiling was not lifted quickly enough. it is conceivable that the government shut down for a week, but by that time it becomes apparent that the shutdown of the government is causing unwanted stress for the u.s. economy, threatening to start another recession, and i would think that by that time both
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parties would be forced to compromise on the issue. less of for it, historically i don't know of a cigar session that has been blamed or linked to congress. all previous recessions have been blamed on the administration, went on the present. >> that is actually true. less talk about that. 16 trillion, over 16 trillion. how long can we go on like this? >> well, not forever. right now medicare is scheduled to go bankrupt and 2023. social security goes under and 2033. barring it real action. to be perfectly honest, the current and structure of the united states of america it is unsustainable long-term. gerri: go right ahead. >> we could tolerate the situation, but ultimately something has to be done in the
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more quickly corrective action is taken, though less painful will remedy be. gerri: all right. thank you for coming on. good stuff. not upbeat, but could. thank you. meanwhile, president obama may be sending a message to our gridlocked congress of the debt ceiling debate. do your job or will do it for you. >> if the house and the senate want to give me the authority so that they don't have to take these tough votes, if they want to put the responsibility on me to raise the debt ceiling and happily take it, but if they want to keep this responsibility than they need to go ahead and get it done. gerri: if they don't can the president by passed the congress using the 14th amendment? for a corrupted by former federal prosecutor joins us. read this so that people can get a sense of what it says. the validity of the public debt of the united states authorized
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by law including pensions and bounties for services in suppressing insurrection or rebellion should not be questioned. it sounds pretty dramatic. >> the 14th amendment, we all remember from high-school kamal is a reconstruction of manila in 1868 after the civil war to plan the most abortive things that it did was granted full citizenship to african-americans, thus overruling the dread scott case. gerri: but that's the word talking about here. >> put that aside. section four was enacted having to do with the debt stemming of the civil war. gerri: which were headed for the south. >> because france and england loaned money to the confederacy. end so that was it. this goes to the core of constitutional analysis. analysis this based upon the intent of the time or merely the text with the words. gerri: democrats, harry reid to when dick durbin kamal saying,
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you can use the 14th amendment here to say, you know, i'm just going to give myself the power here to raise the debt ceiling. that to my have to tell you, not a constitutional scholar : that is an imperial president. >> i'll agree with to a thousand percent to win the reason, i see nothing in the language that the debt much indicates that the president would have a unilateral right to raise the debt ceiling, and frankly i'm a little puzzled his top law professors are split, and that don't know where they're coming from who say they think it is liable. gerri: so was the last time anybody use this? >> it was a case in 1935 called perry in the u.s. supreme court. charles evans hughes indicated that congress could not invalidate a bond and therefore it can then implied theoretically that the executive could of the this ceiling.
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that's a stretch. i don't agree with that. gerri: if the president were to -o this to win the gop just to reno, hand this lawsuit to the white house, the illustration? >> i will give him credit. he does not endorse the viability of this. immediately to vet immediately into court. the very big issue, we call standing. you needed to resolution of both houses of congress to even get into court, in the sun never going to happen to muzzle the protection, crystal ball, real simple to the pesident is that going to use this provision. he has said as much, ad in the computer showed he said, if you want to agree and throw it to me . it's like a waiver. gerri: as long as you are here.
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the trillion dollar question. >> i read another unbelievable article where they said that there is a loophole in federal law which makes it simple, keep it simple for everybody that the u.s. mint could meant the trillion dollar coin, the pauses in the for reserve account. let's include they can do it. gerri: that's crazy. that is the court. there is also the core of opinion. public opinion would not go for that. >> use of of my problems by printing money. here's the new version. you lve it by minting money. gerri: good to see you. someone would put it in the candy bar. crazy. coming up, can lance armstrong redeem himself the the as amended to dumping? next somalia deadbeat nation? president obama's says no, what is he right? of britain and the numbers behind this plan next. ♪
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gerri: president obama telling reporters, we are not a dead the nation because the n
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♪ gerri: are we a nation of deadbeats? the president says no. >> the issue here is whether or not america pays its bills. we are not a dead beat nation. gerri: the evidence would seem to prove we are not that far from being the next greaser spain or italy. take first and foremost coronations total debt.
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your share of that debt to more than 52,000. annual federal deficits of a chilean and more each year for four years. if that is not convincing enough consider household that. americans have walked away from 585 billion in mortgage credit card and other forms of personal that over just the past five years according to market watch. that is another $6,000 per household. while americans have been willing away at household that cutting 7% from a whopping $138 trillion tab we of five years ago, our debt is still more than they were at the peak of the bubble in 2006. we have not made any real progress here. much of the debt relief comes from loan write-offs, not as paying down our debt. according to the federal reserve, of 954 billion in their reaction to a 5,805,000,000,000 or 60%, well more than half the mccain from loan write-offs.
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astonishing. $3 in debt for every two we paid off. corporations are guilty. so far all the fun we have made of greece timidly, and spain, for all their debt problems, we are not in much of a better position. you could say we were worse because it seems we have not come to grips with our self. technology and the problem is the first of to fixing it demand we have a long, long way to go. that's what i think. we want to know what you think. are we a nation of deadbeats? log on. on the right-hand side of the screen and also the result of the end of the show. >> coming up on. ♪ , banned for life from the sport that made him famous, and now he's coming clean about it. why now? what's really behind the confession next. and then news everyone has been waiting for finally revealed to all who will this make wall
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and could save you thousands a year in out-of-pocket costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. gerri: it's one of the biggest falls from grace in sports history. lance armstrong. in a sitdown interview with oprah winfrey admitted two years of doping. what is next for the falling star? after being stripped of his seventh tour de france titles and band from the competition, will destroy the one of redemption won't regret? the president and ceo of ppl
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associates joins me now. it's great to have you here, eugene. his business operations are at stake and also his personally as to whether or not he can be competing again. will he ever be accepted by his family sedan? >> i think that he will. i think there is a lot of work that needs to be done. at the center needs to express genuine remorse for the actions of the past. he has a great vehicle in doing so, which will air on thursday night he won he was very open and answered a lot of ogress question. here's what the doping agency had to say about the ll from grace. the most sophisticated doping program that the sport has ever seen. why is it that for these guys saying that you're sorry is enough? they do it over and over again, and again away with things that regular people never would. >> i think he has to take a step up and needs to become a leader and advocate for cleaning up the
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sport. becoming actively involved in taking measures to combat the negative influences that precipitated his own fault. he's going to have to become an advocate for the clean sport of cycling. gerri: you can do this with any sport, right? so many have this problem. but it's not just will you be allowed to compete, which is one of the things he is thinking here, which is what he really wants. it is also will you be able to compete. he wanted to compete again and he wasn't being prevented from doing that. mentally he could not get together. >> i think it's more than competing with lance griffey wants to compete in triathlons and become a marathoner. but what he did, his legacy -- they stripped the seventh tour de france titles from him. but to overcome cancer at that stage and become an icon for
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sporting. gerri: livestrong as has the financial legacy. they a still raising a lot of money. they need to do. >> he took the right step when he resigned from livestrong. what he did was himself from the charity. the good of the charity is a separate entity from lance armstrong and his own demons. i ink it was a strong move. gerri: let me show you the "new york post" coverage of the spirit instead of the iconic symbol, livestrong, they called it "lie-strong." >> he was found guil a long time ago. you have sensitive issues from the past and they are to know the answers to many just want to know if the player is going to answer truthfully. the public arena is the answer. they want to see lance armstrong answered this question is
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truthfully and candidly as possible. gerri: i think he will see that. what's interesting is that forbes reported on his potential loss of income, that working with sporting goods companies all over the united states, nike canceled his contract last fall. he lost something like $150 million. does that sound about right to you? would that be something that he could never recover from? >> i think you can quantify what a dollar sign on that. it's priceless, it really is. gerri: i would like to see people compete fairly. eugene, what do you tell people your advice? >> i tell them to make the right decisions and think about your family and legacy and last name.
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if future generations about paying it forward and setting a good example for kids in the future. gerri: eugene, thank you for coming in, it's always great to see you. well, on to something totally different, it was back to stay in business in 1967 that the green bay packers beat the kansas city chiefs in the first ever world championship football game. today we call it the super bowl. playing before a non-sellout crowd of about 60,000 people, that's all. the packers scored three touchdowns in the second half to defeat the kansas city chiefs 35 points to 10 points. folks were outraged, instead of going to begin, some folks read their intent is to watch the game from other cities. imagine if those folks were buying tickets this year. today they range from $1800 to $220,000. it will take place at the mercedes-benz superdome next
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month. some consider it an unofficial american holiday. it is the second-largest day for u.s. food consumption after thanksgiving. on average tunnel 140 million people watch some part of the game and football fans remember the one that started it all n this business day, january 15, 46 years ago today. still to come, another down day for the apple stock. and will facebook pick up the slack? the latest on the company's mysterious announcement today. was it worth the hype
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gerri: the latest developments on this story we have been following. new york city giving degrees.
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on the soda ban. from june going forward, they will be subject to a 200-dollar fine. it bans brings the size of a small mcdonald's drink. i am sure we will cover this incessantly. on another topic, this book made a surprise announcement today. a new project, it is a new search feature which focuses on people, photos, places, and interest. welcome to the show, todd.
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>> yes, can search for the statue of liberty, you can search and it's all based upon who is objective and who you are and who you know. gerri: can we monetize this thing anyway? >> it is not well-known but they have a search advertisement on it right now.
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gerri: i have to say that it's underwhelming when it comes to thinking about business of cutting edge innovation and art technology industry. really? this is what i have to look forward to? why don't i just pick up the telephone and call my friends and ask them or talk to them face to face. you know, i am so underwhelmed i can tell you. >> imagine you are in the market for a new car and you want to talk about it with your friends on facebook. it can be pretty valuable information for someone that you know and trust to give a candid assessment. gerri: what about it making stocking easier. some people are criticizing it that way. >> information on the search is public information. you can make it private very easily. default is public. a lot of people don't take time to make their stuff public. gerri: during the break we
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talked about amazon, tell us about that. >> they had an amazing holiday season. they have all kinds of great and powerful features. gerri: what about samsung? >> samsung is amazing as well. they have apple and google and facebook. samsung outsold apple's iphone to that one. gerri: times people here think that the iphone is the only thing to buy. but not everybody agrees with that. >> the android is 73% of the
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global market. the iphone is the minority. gerri: thank you for coming on tonight. we appreciate your time and help. still to come, my "two cents more" on former pesidents. and apple has been tumbling. dangerously close to 52 year lows. find out what happens next.
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gerri: up
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gerri: technology stocks making headlines today. in the last segment we told you
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about facebook's new search feature. investors were not too impressed, they got a lot of attention here. apple and dell. from on the technology doctor, i am joined by gary kaltbaum. i can't help myself. i want to hear what you think about the facebook announcement. we have to start there. >> i think the biggest problem is they set the big media, supposedly it's going to be the end-all, be-all, it's just a little bit better search. now we are going to wait for earnings. the big story is whether they are maki a lot of money off of their mobile platform. if they are from i. if they are, i think i could help the stock owners. gerri: is there a disconnect from the technology geeks on the west coast and wall street on the east coast and wall street believes if you make a public statement, a better contribute to earnings. on the west coast, it's late here is a feature that we found.
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>> wall street is about expectations. everybody is buying up the stock. facebook has been active as of late. it looks that they have been guiding wall street where they are making some pretty good progress. hopefully we will learn a lot more. gerri: do you think that will propel the stocks to skyrocket to levels when it went public long-ago? >> i believe valuations are still a joke. as far as what the market capital of its completeness. if they can grow their earnings and revenue in a very strong way, you never know how high a stocking. yes, i do think it can go higher. the stock is going to end up sitting at the 25 or 35-dollar range. gerri: appleshare is no funding.
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this is the thing that everybody worries about. we make of these headlines? >> the stock went from 1500 to 700. since they came out with the ipod. a monster move, every great stock has had a shelf life. in this quarter, that will be reported probably a little bit less. it is always a bad problem for us.especially when it is over on overload. a lot of hedge fund guys are trapped and they have a stock notwithstanding a monstrous earnings by in about two weeks. gerri: usual phones are just loaded with apple shares.
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everybody has something to get rid of if it does fall. i want to talk to you about dell going private. could this be a new trend? >> you have a stock that has gone from 40 down to 10. earnings and sales going down, pc business heading south. they just haven't been quick enough to be a cloud over her. at this point in time, mike is a happy guy, it's better off being out of the market and being the stock market at this point in time. it is probably a decent move. but right now the stock is what i called it in water. gerri: he's going to make a lot of money on us.
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>> i do believe that the deal gets done it won't be heading north or south. so i think that maybe 15 or 16 books of the most. >> radioshack is down today. what's going on there? you like the stock? >> no. sometimes all you have to do is look at stock price. that is what the market thinks. the competition is huge. circuit city went out a few years ago. fighters are now we will look back. the news today is the target deal where they were running the target mobile. the bigger story is dell's growth is stagnant and i think
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that's a big problem. gerri: thank you for coming on tonight. >> my pleasure, thank you. gerri: while apple struggles, the world's largest largest retailer and private employer is making a major announcement. wal-mart pledging to sell more made in america products and hire more than 100,000 veterans. he brings us to tonight's top five. the most military friendly employers and this is according to the g.i. jobs magazine. number five is burlington northern santa fe. since 2005 from the railway company says that they have hired more than 5000 veterans. number four is alexander hamilton. 25,000 employees are veterans. number four is beloit.
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they offer clear guidance. and number three is csx. number one is usaa. the company recently started to combat claims the initiative, which trains veterans to become insurance adjusters. 20% of employees are veterans or in many are the people who buy their services are also veterans. very well-known in the military community. we will be right back with erin took the question of the day. are we a nation of deadbeats? and more on waste, fraud, and abuse. not in a good way
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gerri: psident obama raising the debt ceiling, thing that we are not a nation of deadbeats. here is what some of your posting on my facebook page. christina said yes, we are a nation of deadbeats and people are racking up more debt than they can afford to pay back. and others agree. too many are willing to sit back and let others support them. 21% said no. be sure to log onto gerriwillis.com for a long one question every weekday. and ilip from georgia says obama fails to user consent of the governed.
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reminding us of the perils that we face in the greatness of our country. ken says the real endangered species of are the citizens of the united states. as a result, taxpayers pay for security and other expenses for former living president. totaling $4 million per year. now, most of us probably would not begrudge or commanders in chief that privilege. but as usual, goes too far. b

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